Information, Policy & Guidance

Feed In Tariff & Renewable Heat Incentive

For Planning Policy

Feed In Tariff (for full details visit the Ofgem website) or (Energy Saving Trust)

 Details of the latest DECC FiT review (Nov 2011) can be found on:

http://www.energysavingtrust.org.uk/Generate-your-own-energy/Financial-incentives/UK-Government-proposed-changes-to-solar-PV-Feed-in-Tariffs

http://www.energysavingtrust.org.uk/Media/Generate-your-own-energy/PDFs/Energy-Saving-Trust-FIT-review-fact-sheet_UK

 The tariff changes affect PV which is being significantly scaled back. For multiple installation projects (owned or claimed by a single organization), the tariff will be reduced by a further 20% after 1st April 12.

DECC stress that the proposal is still part of a consultation process, and as such the new rates are provisional.

Existing and proposed PV rates: 

Band (kW) Current tariff (p/kWh) Proposed tariff (p/kWh)
≤4kW (new build)        37.8        21
≤4kW (retrofit)        43.3        21
>4-10kW        37.8        16.8
>10-50kW        32.9        15.2
>50-100kW        19        12.9
>100-150kW        19        12.9
>150-250kW
       15        12.9
>250kW-5MW          8.5          8.5*
stand alone          8.5          8.5*

 *These are the current tariffs, which we are not proposing changing and which, like all other current tariffs, will be adjusted in line with the Retail Price Index from 1 April 2012.

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 17 June 2011: New FIT rates announced. DECC link. Schemes under 50kWp are unaffected by the changes. Changes take effect from 1 August.

New PV rates: 50 kWp - 150 kWp = 0.19p p/kWh: 150 kWp - 250 kWp = 0.15p p/kWh: 250 kWh - 5 MW, and stand alone installations = 0.85p p/kWh.

New anaerobic digestion CH4 generation: <250 kWp = 0.14p p/kWh: 250 kW - 500 kW = 0.13p p/kWh

 To be eligible to apply for the FIT scheme, the declared net capacity of an installation must not exceed 5 MW. The following renewable and low carbon technologies are eligible: 

• Photovoltaic
• Wind
• Hydro
• Anaerobic digestion
• Micro CHP

To apply for the FIT scheme, installations must be in Great Britain and have a meter compliant with the metering legislation in place. Generation must be metered and FIT payments are made to generators on the basis of metered generation. Meters will need to be able to measure generation, usage and import. Claimants must take meter readings once a quarter which they submit to their energy supplier.

Automated real time smart monitoring is essential if the claimant wants to be sure that they will get the maximum revenue possible. Renewable energy systems will sometimes suffer a loss in efficiency or occasionally fail completely. If this happens then the claimant may not know about it until the next scheduled meter reading - which would lower than expected.

Installations which have a capacity of 50kW or less (excluding anaerobic digestion) are required to obtain the Microgeneration Certification Scheme (MCS) certification or equivalent. This means that the installations must be commissioned by a MCS-certified Installer using a MCS-Certified Product or be certified under an equivalent scheme. Such installations need to apply for accreditation by contacting a FIT Licensee with their MCS details.

Installations which are between 50kW and 5MW (or all anaerobic digestion up to 5MW) need to apply for accreditation through the ROO-FIT process.

 

Renewable Heat Incentive: (for further details please see DECC website)

The scheme will be introduced in two phases.

In the first phase, long-term tariff support will be targeted in the non-domestic sectors, at the big heat users – the industrial, business and public sector. Under this phase there will also be support of around £15 million for households through the Renewable Heat Premium Payment.

The second phase of the RHI scheme will see households moved to the same form of long-term tariff support offered to the non-domestic sector in the first phase. This transition will be timed to align with the Green Deal, which is intended to be introduced in October 2012.

Metering will be required for most RHI technologies. Claimants will need to take quarterly heat meter readings and submit them to Ofgem who will administer the scheme. The rationale for real time monitoring is the same as for the Feed In Tariff. 

Monitoring will enable government, manufacturers, installers and consumers to better understand how to make sure ‘real life’ users get the most out of them, and to inform decisions on the tariff levels and other scheme parameters for phase 2.

For small and medium-sized installations (up to and including 45kWth), both installers and equipment must be certified under the Microgeneration Certification Scheme (MCS) or equivalent standard.

Eligible technologies:

• Solar thermal
• Ground Source Heat pumps
• Air Source Heat pumps
• Biomass boilers
• Biomethane

 

 
Feed in Tariff rates: as published by DECC 1st April 2011
                   
Photovoltaic p/kWh   Wind turbines   p/kWh   Micro/Med-hydro  p/kWh   Anaerobic digestion gas
p/kWh
Up to 4 kWp     Up to 5 kWp 36.2p   Up to 15 kWp 20.9p   Up to 250 kW
14p
New building 37.8p   1.5 - 15 kWp 28.0p   15 - 100 kWp 18.7p    250 kW - 500 kW
13p
Retrofitted 43.3p   15 - 100 kWp 25.3p   100 kWp-2 MW 11.5p      
4 - 10 kWp 37.8p   100 - 500 kWp 19.7p   2 MW+ 4.7p      
10-50 kWp 32.9p   500 kWp-1.5 MW 9.9p          Export to the Grid
 
50  - 150 kWp
19.0p 1.5+ MW
4.7p     Excess generation
3.1p
150 kWp-250 kWp 15.0p                  
250 kWp - 5 MW
8.5p       Combined Heat & Power electricity
 p/kWh
Stand alone 8.5p                Under 2 kWp
10.5p
                     
Renewable Heat Incentive domestic grants (per installation) for Premium Payment scheme 2011-2012 (TBC by DECC)  
Solar Thermal £300   Ground Source Heat £1,250   Air Source Heat £850   Biomass boilers £950
       (off gas grid)
     (off gas grid)
     (off gas grid)
 
           
RHI rates for industry, business and large organizations (20 years duration)        
Solar thermal p/kWh   Small ground source p/kWh   Small biomass p/kWh      
Under 200 kWth 8.5p   Under 100 kWth 4.3p   Under 200 kWth        
Requires metering     Requires metering     Tier 1* 7.6p      
            Tier 2* 1.9p      
      Large ground source              
      100 kWth + 3.0p   Medium biomass        
      Requires metering     200 -1,000 kWth        
            Tier 1* 4.7p      
            Tier 2* 1.9p      
                     
            Large biomass        
            1,000 kWth + 2.6p      
            Requires metering        
           *Biomass Tier Break is: installed capacity x 1,314 peak load hours